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Vietnam’s revised law rates civil servants by position not rank

The revised law replaces seniority-based structures with a position-based system for public personnel administration, including recruitment, promotion, training, and dismissal.

THE HANOI TIMES — Vietnam’s National Assembly passed the amended Law on Cadres and Civil Servants on June 24, paving the way for a more transparent, performance-based, and merit-driven public sector.

The legislation was approved by 418 of the 423 lawmakers present and will take effect on July 1, 2025. The performance-linked provisions will become effective on January 1, 2026.

Chairman of the Hanoi People's Committee Tran Sy Thanh (1st left) joins National Assembly lawmakers at the session passing the Law on Civil Servants on June 24. Photo: Quochoi.vn

From ranks to roles

The revised law marks a transition from a seniority-based system to one grounded in job responsibilities and outcomes, ensuring that recruitment, promotion, training, and dismissal are performance-based.

The law also abolishes the long-standing distinction between commune- and provincial-level civil servants, creating a unified management framework across all levels of government.

For the first time, the law permits hiring professionals from outside the state apparatus, such as academics, scientists, and business leaders, to hold key leadership or technical roles on fixed-term contracts, thereby bringing innovation and specialized expertise into public administration.

Notably, there will be a key performance indicator (KPI)-based system to evaluate the quality and efficiency of civil servants’ work.

Officials who perform well will receive bonuses and promotions, while poor performance could lead to reassignment or dismissal.

These changes help Vietnam align its public administration with international best practices, demonstrating its commitment to good governance.

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